WorksheetsNet Present Value to Right Issues
Total questions: 25
Worksheet time: 50mins
What represents the company's assets and liabilities in terms of their current market values?
Net Income
Gross Asset Value
Net Asset Value
Shareholder Equity
What is the net difference between the total discounted value of future cash flows and the investment's present cost?
Future Value
Net Present Value
Return on Investment
Internal Rate of Return
What term refers to a fixed cost in short?
Direct Cost
Operating Leverage
Variable Cost
Break-even Point
What is an investor's combined investment in risky and riskless assets like stocks and T-bills called?
Diversified Fund
Balanced Portfolio
Optimal Risky Portfolio
Mixed Asset Fund
What is a contractual security that gives the right to buy or sell financial assets like stocks or bonds?
Warrant
Option
Futures Contract
Equity
What market operates outside organized stock or option exchanges, involving direct transactions?
OTC (Over-the-Counter Market)
Commodity Market
Forex Market
Futures Exchange
What is the capital contributed by shareholders, recorded as part of stockholders' equity in the balance sheet?
Retained Earnings
Paid-in Capital
Shareholder Loan
Equity Reserve
What is the amount of money the issuer promises to repay bondholders at the maturity date?
Book Value
Par Value of the Bond
Market Price
Redemption Yield
What is the secondary market trading place in the Philippines for fixed-income securities?
Philippine Stock Exchange (PSE)
Philippine Dealing Exchange (PDEx)
Bangko Sentral ng Pilipinas
Local Bond Market
What is the combination of a common stock and a stock put option called?
Hedging Strategy
Portfolio Insurance
Risk Mitigation
Equity Derivatives
Which model uses Bayesian methods to adjust option pricing based on new information and market conditions?
Black-Scholes Model
Portfolio-insurance Bayesian Option Pricing Model (PIBOPM)
Monte Carlo Simulation
Price Differentials Option Pricing Model
Which type of share gives the holder the right to receive a preferred dividend before net profit distribution to common shareholders?
Common Stock
Convertible Bond
Preferred Stock
Treasury Share
What is the current value of future cash flow or investment called?
Discount Rate
Future Value
Present Value
Net Asset Value
Which model focuses on price differentials between related securities to determine option prices?
PRICE DIFFERENTIALS OPTION PRICING MODEL (PDCOPM)
Black-Scholes Model
CAPM Model
VAR Model
What is the ratio of stock market price to earnings per share (EPS) called?
Price-Book Ratio
Price-Earnings Ratio (P/E Ratio)
Dividend Yield
Earnings Growth Ratio
What refers to financial instruments like bonds and notes or equity-related instruments like preferred stock?
Pricing Financing Derivatives
Equity Swaps
Derivatives Pricing
Convertible Securities
What does 'pricing issued notes derivatives' primarily involve?
Assessing the performance of equity stocks
Determining the value of bonds with special features
Calculating dividend payouts for preferred stock
Setting the interest rate for treasury notes
What term describes the method used to set the initial or conversion price for financial instruments like convertible bonds?
Hedging Strategy
Pricing Strategy
Valuation Model
Interest Rate Policy
Where does the underwriting process of IPOs and right issues typically take place?
Secondary Market
Over-the-Counter Market
Primary Market
Commodity Exchange
What term describes the amount used to reduce the loan balance?
Interest Payment
Principal Repayment
Sinking Fund Contribution
Amortization Fee
Which capital budgeting technique is used to determine the profitability of a project by analyzing its contribution to overall returns?
Net Present Value (NPV)
Profitability Index
Internal Rate of Return (IRR)
Payback Period
What is the term for the right to sell a common stock?
Call Option
Put Option
Equity Swap
Forward Contract
What is the benchmark interest rate used in international loan agreements called?
Discount Rate
Prime Rate
Reference Rate
Treasury Rate
What is the process of repaying an old debt with a high interest rate and borrowing a new debt with a lower interest rate called?
Debt Restructuring
Refinancing
Repay-And-Borrow Scheme
Consolidation Loan
What financing strategy involves a listed company raising funds by offering additional shares to its existing shareholders?
Initial Public Offering
Stock Buyback
Right Issues
Dividend Reinvestment Plan
